India-UK FTA expected to come into force in April
What's the story
The India-UK free trade agreement (FTA), signed in July 2025, is expected to come into force from April 2026. A government official confirmed the development, saying both countries are working to complete necessary procedures for implementation. The two nations have also signed the Double Contributions Convention (DCC) to prevent temporary workers from paying social security contributions in both countries at the same time.
Parliamentary ratification
FTA yet to be approved by UK parliament
Before the FTA can come into force, it needs to be approved by the UK Parliament. In India, such agreements are approved by the Union Cabinet. Once cleared by the British Parliament, the pact will be implemented on a mutually agreed date. The UK's House of Commons debated on this agreement earlier this week with Chris Bryant, Minister of State in Department for Business and Trade stressing its significance as a major achievement.
Trade expansion
CETA aims to double bilateral trade
The Comprehensive Economic and Trade Agreement (CETA) aims to double the $60 billion trade between the two economies by 2030. While India has opened its market to various consumer goods such as chocolates, biscuits, and cosmetics, it will gain greater access to export products like textiles, footwear, gems and jewelry, sports goods, and toys. Tariffs on Scotch whisky will be cut from 150% to 75% immediately under this pact.
Duty reduction
India will cut import duties on cars
India will cut import duties on cars to 10% over five years from the current rate of up to 110% under a gradually liberalized quota system. In return, Indian manufacturers will get access to the UK market for electric and hybrid vehicles within a quota framework. This trade deal is expected to boost bilateral trade by around $34 billion annually and double it by 2030 from the current $60 billion mark.
Agreement scope
Deal includes commitments on services, investment facilitation, labor mobility
The India-UK FTA goes beyond just trade in goods. It also includes commitments on services, investment facilitation, labor mobility, public procurement, and also cooperation on technical standards. However, certain sectors such as agriculture and sensitive financial services have been excluded for now. The deal is expected to ensure comprehensive market access for Indian goods across all sectors, with tariff elimination on about 99% of tariff lines covering almost 100% of trade values.